Key Takeaways
- Centralized exchange Bybit has restored full access to its app and website for users in India after completing its registration as a Virtual Digital Asset Service Provider (VDA-SP).
- The move comes after a months-long phased shutdown as the company worked to achieve “regulatory harmonization” with Indian authorities.
- Bybit’s return is a significant development for the Indian crypto market, which is considered one of the most promising globally and a leader in crypto adoption.
In a significant victory for regulatory compliance, the centralized exchange Bybit has announced the full restoration of its services in India.
The company, which had been undergoing a phased shutdown in the country since early 2025, has now completed its registration as a Virtual Digital Asset Service Provider (VDA-SP).
The Significance of Regulatory Compliance
India has been a major focus for regulators looking to create a formal framework for digital assets, and the Financial Intelligence Unit of India (FIU IND) requires all crypto businesses to register as VDA-SPs and comply with anti-money laundering (AML) and counter-terrorism financing (CTF) rules.
https://twitter.com/Bybit_Official/status/1965003852651823518
By registering with the FIU IND, Bybit has demonstrated its commitment to operating within a regulated environment and can now provide a secure, legal platform for its growing number of Indian users.
https://twitter.com/BybitSouthasia/status/1965006010323771803
Bybit co-founder and CEO Ben Zhou celebrated the news, calling it “a new chapter for Bybit in India” and a testament to the company’s commitment to trust, transparency, and security.
India’s Growing Market
Bybit’s return comes at a time when India is once again leading the world in crypto adoption. According to the latest Chainalysis Global Crypto Adoption Index report, India holds the top spot, underscoring the country’s immense potential as a digital asset hub.
For Bybit, re-entering this market with full regulatory approval is a strategic imperative. By providing a fully compliant and functional platform, Bybit aims to capture a significant share of the Indian market and capitalize on the country’s tech-savvy population and high demand for crypto services.
Final Thoughts
Bybit’s successful re-entry into the Indian market is a powerful statement about the growing importance of regulatory compliance in the crypto industry. It shows that major exchanges are willing to invest the time and resources to work with regulators to ensure the long-term health and stability of the digital asset ecosystem.
Frequently Asked Questions
What is a Virtual Digital Asset Service Provider (VDA-SP)?
A VDA-SP is an entity that facilitates services involving virtual assets, such as exchanges, transfers, and safekeeping, and must be registered with the Financial Intelligence Unit of India (FIU IND) to operate legally.
Why did Bybit shut down its services in India?
Bybit temporarily restricted its services to comply with new regulatory requirements in India and finalize its registration as a VDA-SP.
What is the significance of Bybit’s return to India?
Bybit’s return is significant because it provides a fully compliant platform to a major global crypto market, demonstrating the company’s commitment to regulatory harmonization and a long-term presence in the country.
